The Hindu Business Line : GoM decides against cap on iron ore exports

New Delhi, July 6 Putting an end to the conflicting demands of the steel industry and the iron ore exports, the empowered Group of Ministers (GoM) on mining has decided not to put any cap on the export of iron ore, while approving the National Mineral Policy 2007. However, the differential rate of export duty to discourage export of quality iron ore would continue.

“We have not proposed any cap on iron ore exports, exports would be freely allowed,” the Minister for Mines, Mr Sis Ram Ola, told newspersons after the meeting on Friday.

‘Exports to continue’

At present, the export duty on the ore which contains more than 62 per cent of iron has a customs duty of Rs 300 per tonne and for the lesser grade the duty is Rs 50 per tonne.

“Iron ore exports would continue in the same way as it has been happening until now. It will be re-visited after five years. There was, however, no discussion on the export duty which would be imposed on iron ore,” a Ministry official told Business Line.

Royalty system

In another decision, the GoM, responding to the long-standing demand of State governments, approved introduction of ad-valorem system of royalty for major minerals in the new policy. The introduction of ad-valorem royalty system replacing fixed value system, if finally passed by Parliament, would lead to many fold increase in the revenues of the mineral rich States.

The Minister of State for Mines, Mr T. Subbarami Reddy, said, “The GoM has cleared the National Mineral Policy-2007 and there would be no further meetings in this regard. It would now be sent to the Cabinet for its approval in the next 15 days after which we hope to table it in the monsoon session of Parliament.”

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